How to turn your side hustle into a business | Stewardship Concepts Financial Advisors

You have a side hustle in Spokane Washington and it’s starting to bring in meaningful income. If you enjoy this side hustle, you may have dreamt about it becoming a full-time job. Many people can get stuck wondering how to make this dream a reality. When building a business, starting with a side hustle is a great way to start. A side hustle allows you to test the market and demand without risking your main source of income. If your side hustle fails, there’s a full-time job bringing in consistent income. Many businesses take time to build a reputation and customer base. Beginning with a side hustle allows for demand to build instead of requiring income immediately. At Stewardship Concepts, your Spokane financial advisor helps turn your side hustle into a full-time business.

Create a Business plan

A high number of businesses fail. Across the United States, 20% of businesses fail in the first two years, and 45% in the first five years. To avoid becoming a statistic, have a plan. If you are thinking of quitting your main job, making sure your business will be successful is important. A business plan is designed to define the company’s objective and describe how it will achieve. Answering the questions what are you going to sell and to whom? A detailed business plan will include projected expenses and income, industry outlook, target customer, future funding requirements, plans for intellectual property, and a marketing strategy.

Making a business plan isn’t only for new companies but for established ones as well. Creating a business plan for an existing company can be a crucial time to evaluate the business. This exercise is useful for companies that are declining or going through a major change. Business owners have great ideas but can be unorganized. A business plan can help consolidate ideas into a cohesive strategy which in turn helps to communicate that idea to investors and employees.

Finance your business

Most businesses will require some type of capital to get started. There are many ways to finance your business. Meet with your CPA or Spokane financial advisor to talk about your different options.

Using savings is beneficial because you won’t owe anyone money and will reap all the benefits from the success of your business. You’re already taking a bet on yourself by starting a business, this is another way to bet on yourself.

Raising money through crowd-funding platforms like Kickstarter. A great way to raise funds and at the same time test the demand for a product.

Seeking out individual investors, friends, or family can be a difficult option because it can be awkward convincing someone to loan you money. But if you develop a sound business plan and they trust you, this is a great option for financing your Spokane business.

There are many options for taking out loans. Two options are taking out a personal loan or using a loan against your home. For a government SBA loan, typically they will require the business to have two years of history.

Behind the scenes

File the appropriate paperwork and register with federal and state entities.

Attain the correct licenses and liability insurance depending on your business.

Consult your CPA and Spokane financial advisor to find out how to structure your business as an LLC, partnership, corporation, or sole proprietorship.

File for a Tax ID unless you are structured as a sole proprietor.

Open a business checking account.

Once established, remember:

Be prepared to work harder than in your old full-time job. For most businesses, the first year takes more time and lots don’t make money their first year. If you’re looking for a helpful tool for your business in Spokane, use the Business.Wa.Gov site.

File your annual report (https://dor.wa.gov/file-pay-taxes) and pay B&O (https://www.sos.wa.gov/corporations-charities) taxes every year.

Utilize a retirement plan. Your Spokane financial advisor can help you find out if this will save you money.

Surround yourself with a team. Find a bookkeeper, CPA, attorney, and financial advisor.

How a financial advisor can help

Successful people surround themselves with a team. Do what you’re best at and find an expert for everything else. At Stewardship Concepts, our financial advisors synergize business and personal financial planning to save you time, so you can do more of what truly matters. Do what you’re best at and find the best for the rest.

About the Author

Noah Schwab CFP® is a financial advisor in Spokane, Washington who specializes in helping Spokane small business owners.